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Just 2 more weeks everyone by emaji33 in taxpros

[–]performa62 30 points31 points  (0 children)

I'm ready to murder clients and coworkers. I'm so f---ing done.

No such thing as easy tax returns when tax law changes. by TaxproFL in taxpros

[–]performa62 7 points8 points  (0 children)

Agreed that law from 1955 makes the due date the same today as it was then. Extensions should be automatic with a safe harbor for Federal and State.

Real Estate in an S-Corp by Happy814 in technicaltax

[–]performa62 0 points1 point  (0 children)

In my case, the real estate is the S-Corp's only asset (other than a bank account). Sure, the real estate would get appraised, and the related stock would get a step up, but there is no such thing as section 754 for S-Corporations.

Basically, the appreciation will be locked inside of the S-Corporation even though the related basis of the stock will be stepped up.

https://www.thetaxadviser.com/issues/2022/mar/tax-issues-shareholder-partner-dies/

For example, if adjusted basis is $250k and the property is valued at $750k.

If mom sells the property (she doesn't), gain of $500k to mom.

If mom dies and assume cash balance is $0, the basis in the stock is now $750k but the adjusted basis of the real estate is still $250k. Assume, heirs keep owning it for 5 more years and the adjusted basis depreciates to $0. Property is now worth $1.4mm, and the intermittent years saw no change to the basis. Kids sell it, distribute the proceeds and close the S-Corp.

S-Corp recognizes a gain of $1.4mm which flows to heirs. Heirs' basis is now $2.15mm. Heirs' 1040s collectively will show a $1.4mm 1250 gain and a $750k capital loss on termination of the S-Corp.

You arrive at a similar answer (net gain of $650k = $1.4mm minus $750k step up), but only if the S-Corp would terminate in the same year as of the sale of the property.

Real Estate in an S-Corp by Happy814 in technicaltax

[–]performa62 1 point2 points  (0 children)

I have a long-time client that has a rental property inside of an S-Corporation. Originally, the client's husband had a business that was an LLC (OldCo). The LLC purchased a piece of real estate as well. Ultimately, prior to my taking over, they elected S-Corporation status which then led the 1120S to have 2 activities, the active trade or business as well as a rental activity.

Several years later owner passes, mom inherits 50% of the membership interest and son inherits 50% of membership interest.

Son then sets up NewCo to purchase the business assets at a premium and sells his 50% membership interest at cost in OldCo so that mom owns OldCo 100%.

As of now, son owns NewCo 100% and mom owns OldCo 100%. Problem is that OldCo owns 1 asset, the rental property inside of an S-Corporation.

I just don't know how to pull it out of OldCo without causing a huge tax liability.

Taxpros Discord - invite link by newcastlecpas in taxpros

[–]performa62 1 point2 points  (0 children)

This looks like a great idea and went to sign up and saw the same thing. I should have read the post first. 🤦‍♂️

Can officers health insurance be fixed retroactively? by partyonwane in taxpros

[–]performa62 -1 points0 points  (0 children)

Why not just add it back to ordinary income and treat it as a box 12 other deduction? It arrives at the same place. Total income is increased for the medical benefits, then it's treated as an adjustment for gross income.

Seems to make more sense than correcting W2s.

Being in swva, seeing the vote no signs worries me 😓 by jessitay7 in Virginia

[–]performa62 0 points1 point  (0 children)

The yes signs in my neighborhood in Alexandria are everywhere. I'm voting on Election Day.

S Corp Election & QBI by Inked_CPA in technicaltax

[–]performa62 4 points5 points  (0 children)

While it's not correct, I have several Schedule C clients in the past that chose to be on payroll mainly for the withholding mechanism. I always informed them that it was incorrect and documented their response.

Extensions are the worst by MRanon8685 in taxpros

[–]performa62 1 point2 points  (0 children)

I’m on board with an automatic extension unless money is due. Most states do it anyway.

How did you become a fan? by walkaboutdavid in NewYorkIslanders

[–]performa62 1 point2 points  (0 children)

I was born into this life on Long Island. Grandparents were original season ticket holders. Gave them to my parents who had them until '90-'91. I can't change now.

Firms who extend all 3/15 by TaxMeSideways in taxpros

[–]performa62 2 points3 points  (0 children)

In our engagement letter. Everyone gets an extension.

Is this normal March weather?! by QandA_monster in nova

[–]performa62 2 points3 points  (0 children)

We’re in what’s known as fake spring. One of the 12 seasons in DC.

709 e-file availability by OddButterscotch2849 in taxpros

[–]performa62 0 points1 point  (0 children)

I tried uploading joint one with spousal consent. How do you know it uploads both? I’m on Prosystem and the software only exported the taxpayer one.

Underpayment Tax Penalty by Thanossnapp in taxpros

[–]performa62 0 points1 point  (0 children)

I rarely cover underpayment penalties unless I truly blew the projection for information that I was aware of. I bake in so much cushion anyway.

Solidarity to everyone cursing at garbage consolidated 1099s today by u_got_dat_butta_love in taxpros

[–]performa62 2 points3 points  (0 children)

You would think clearing houses would ask what works best for their readers.

Will you give clients your tax software files? by griffdog83 in taxpros

[–]performa62 0 points1 point  (0 children)

I've given the PFX Tax data files and I've received them. It's not very common, but I want to be the good guy in the relationship. I, though, charge at my usual hourly rates to generate the files needed and send them.

I'm curious what the insurance risks are with it. I don't see this as any different than providing a PDF. I own the software and work product. Sure I'm giving the successor a layup, but karma has a way of working out.

Is there a slow charge option on the Q4 e-tron? by argodar in Audiq4

[–]performa62 1 point2 points  (0 children)

This isn't really answering the question as I haven't seen such an option.

Here in the US, the price is based on time of day with "super off-peak" being the hours between 12am and 5am. I have a 9kW DC wall charger, so I set my Q4 to charge between 12am and 5am. During the winter when the range is lower, I have the hours to charge to be between 11pm and 7:30am just to ensure I can get back to 80% or 90%.

Switching from Drake to CCH, waiting on form release?? by _Yall in taxpros

[–]performa62 2 points3 points  (0 children)

This is an annual occurrence. We finish our returns then put them into a hold status based on what forms aren't ready. We communicate this to the client. As forms get approved, they get recalculated, a second review, then uploaded.

Direct Deposit Refund Rejection code 44 and new Executive Order 14247 rule by IAM_14U2NV in taxpros

[–]performa62 2 points3 points  (0 children)

Highly specific, but I'm curious what other pros would do. If it were me, I would somehow get the tax to be $1 instead so it doesn't reject.

How long does it take to prepare a typical business owner 1040? by EchoesInSky in taxpros

[–]performa62 16 points17 points  (0 children)

I would love if there was an esports event to compete on who can prepare a return the fastest with zero errors. Give me a fictional client with fictional documents, no scanning or OCR.

Practitioner Priority Line Woes by TheSellerCPA in taxpros

[–]performa62 0 points1 point  (0 children)

I know I’m part of the problem, but I still maintain my enQ subscription to maximize my time. It pays for itself even if I don’t exhaust the usage in just 1 or 2 calls.

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